A-Mark Precious Metals(US:AMRK)2019-09-13 02:18Financial Data and Key Metrics Changes - Revenues for fiscal Q4 2019 decreased 52% to $850 million from $1.77 billion in Q4 of the previous year, primarily due to lower forward sales and gold ounces sold [6][7] - For the full year, revenues decreased 37% to $4.78 billion from $7.61 billion, mainly due to lower forward sales and lower gold and silver prices [6][7] - Gross profit for Q4 2019 increased 11% to $6.5 million, while for the full year, gross profit increased 9% to $32 million [8][9] - Interest income for Q4 2019 decreased 6% to $5.3 million, but for the full year, it increased 20% to $19.3 million [10][11] - Net loss for Q4 2019 totaled $823,000, an improvement from a net loss of $3 million in Q4 of the previous year; full-year net income was $2.2 million compared to a net loss of $3.4 million in fiscal 2018 [12] Business Line Data and Key Metrics Changes - Gold ounces sold in Q4 decreased 26% from the prior quarter and 40% from Q4 of last year, totaling 350,000 ounces; for the full year, gold ounces sold decreased 6% to 1.8 million [14] - Silver ounces sold in Q4 decreased 25% from the prior quarter but increased 46% from Q4 of last year, totaling 12.5 million ounces; for the full year, silver ounces sold increased 46% to 67.6 million ounces [14] - Wholesale trading ticket volume decreased 22% to 24,300 tickets in Q4 but increased 5% to 120,300 tickets for the full year [14][15] Market Data and Key Metrics Changes - The inventory turnover ratio for Q4 was 3.0, down 35% from the prior quarter; for the full year, it was 16.6 compared to 26.8 in fiscal 2018 [15] - The number of secured loans at the end of Q4 totaled 2,806, down 20% from Q4 of last year, but the dollar value of the CFC loan portfolio increased 13% to $125.3 million [16] Company Strategy and Development Direction - The company aims to expand its platforms of products and services and increase market share in the global precious metals market [4] - A-Mark Global Logistics (AMGL) is central to the company's strategy, providing logistics services and aiming to improve performance metrics [17][18] - The secured lending segment saw significant growth, highlighted by a $100 million asset-based securitization [19] - The company plans to focus on new growth areas to enhance competitive positioning and expand its offerings [22][24] Management's Comments on Operating Environment and Future Outlook - Management noted that geopolitical uncertainty and global economic concerns have led to strong upward movement in gold and silver prices [22] - There are signs of an uptick in demand and increased volatility, with cautious optimism about future prospects [23] - The company is positioned for financial and operational outperformance in 2020 compared to the previous year [24] Other Important Information - The CFO announced that this would be his last earnings call, with a succession plan in place for his role [25][26] Q&A Session Summary Question: Can you provide a breakdown of inventory levels between gold and silver? - The company does not generally break down inventory but noted that current inventory is significantly weighted towards gold due to market conditions [29] Question: How is the Goldline business performing? - The Goldline business is still not profitable but has seen improved sales recently due to market volatility [33][34]